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Charter One and Governor Granholm announce Spartan Motors to expand with Job Creation Loan Program
Spartan Motors will create 175 new jobs with funding from the Charter One Job Creation Loan ProgramDETROIT (February 26, 2007) - Gov. Jennifer Granholm and Sandra Pierce, President and CEO, Charter One Bank, Michigan, today announced that Spartan Motors is expanding with the help of a loan from the Charter One Job Creation Loan Program, an initiative that offers below-market rate loans to companies that commit to creating or expanding jobs in Michigan.
Spartan Motors will borrow $7 million to build a new manufacturing facility on its corporate campus in Charlotte, Mich. The company is a world leader in the design, engineering and manufacturing of custom chassis and vehicles for the recreational vehicle, fire truck, ambulance, emergency-rescue, military and specialty vehicle markets. Under the terms of the low 4.99% loan, Spartan Motors has pledged to create 175 new, full-time jobs over the next three years.
“Spartan Motors has witnessed explosive growth in its core business and specialty markets,” said Sandra Pierce, President and CEO, Charter One Bank, Michigan. “Charter One is proud to support Spartan Motors’ continued growth in our state and we commend the company for its commitment to job creation.”
Spartan Motors employs more than 1,100 at facilities in Michigan, Pennsylvania, South Carolina, South Dakota, Minnesota and Pennsylvania. The new 102,000 square-foot manufacturing facility in Charlotte will create 175 jobs that will help Spartan meet increased manufacturing demands in its industry, and will broaden its entry into future specialty product markets.
“As we invest in our workers and our economy it is critical that growing companies have access to capital they need to expand and create jobs in Michigan,” Granholm said. “This loan program is providing that vital capital to businesses like Spartan Motors.”
The Charter One Job Creation Loan Program is a partnership in which Charter One is offering $200 million in loan funds at a below-market interest rate to companies that commit to creating or expanding jobs in Michigan. Created in conjunction with Governor Granholm, the program is an integral part of the governor’s comprehensive Jobs Today, Jobs Tomorrow economic plan. The goal of the Job Creation Loan Program is to create 5,000 new jobs in the state over the next three years by helping companies expand their operations or relocate to Michigan.
The Charter One Job Creation Loan Program requires borrowers to create a minimum of one full-time job for every $40,000 borrowed at the fixed interest rate of 4.99% (currently 3.26 points below prime). The minimum loan size is $1 million and the maximum is $10 million. Companies eligible for the program include any public or privately owned business in a broad array of industry sectors, including manufacturing, distribution centers, emerging sectors, and the 21st Century Jobs Fund competitive-edge technologies: life sciences; alternative energy; advanced automotive, manufacturing and materials; and homeland security and defense.
“Coming off the best year in our history, Charter One's program is helping Spartan Motors add great people, which will help us as we accelerate our growth in 2007,” said John Sztykiel, president and CEO of Spartan Motors. “With its strong technical skills and experience in the automotive industry, Michigan's labor force is an asset for Spartan Motors as we continue to expand into new specialty vehicle markets."
The Michigan Economic Development Corporation is marketing the program to companies already in Michigan and those businesses considering relocating to the state. MEDC administers the loan program and will conduct annual audits to certify that borrowers fulfill job creation commitments.
Companies interested in obtaining more information about the program can log on to www.michigan.org or contact the MEDC at 888-522-0103.
About Charter One Bank, N.A.
Charter One Bank, N.A., is a $46 billion bank operating in Illinois, Indiana, Michigan and Ohio. It has 474 branches and more than 800 ATMs. It has 120 branches and 135 ATMs in Michigan. Charter One is a subsidiary of Citizens Financial Group, Inc., a $164 billion commercial bank holding company headquartered in Providence, R.I. Citizens has more than 1,600 branches, approximately 3,200 ATMs and 26,000 employees in a 13-state retail branch network and has non-branch retail and commercial offices in about 40 states. Citizens is the eighth-largest commercial banking company in the United States ranked by deposits and ninth in assets as of March 31, 2006. Citizens is owned by RBS (The Royal Bank of Scotland Group plc).
About Spartan Motors, Inc.
Spartan Motors, Inc. (Nasdaq: SPAR) is a world leader in the engineering, design and manufacturing of heavy-duty custom platforms and emergency vehicles. Spartan Motors, Inc. (www.spartanmotors.com) designs, engineers and manufactures custom chassis and vehicles for the recreational vehicle, fire truck, ambulance, emergency-rescue and specialty vehicle markets.The company's brand names – Spartan™, Crimson Fire™, Crimson Fire Aerials™, and Road Rescue™ – are known for quality, value, service and being the first to market with innovative products. The Company employs approximately 1,100 at facilities in Michigan, Pennsylvania, South Carolina and South Dakota. Spartan reported sales of $445 million in 2006 and is focused on becoming the premier manufacturer of specialty vehicles and chassis in North America.
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